Only one in five defined benefit pensions is still open to new members, while 16 per cent of firms have closed their scheme to existing ones during the past year, figures have shown.

Companies are continuing to take steps to reduce their pensions liabilities, with only 20 per cent having defined benefit schemes that are still open to new staff, compared with 33 per cent 12 months ago, according to PricewaterhouseCoopers.

Marc Hommel, a partner at PwC, said: "That companies continue to close their defined benefit schemes to new employees is no surprise, but the trend towards ceasing to provide future accrual of benefits to existing employees shows just how far UK companies are prepared to go to address their exposures to defined benefit pension provision."